The Optimal Amount of Credit Equates the Incremental Costs of Carrying

question 81

Multiple Choice

The optimal amount of credit equates the incremental costs of carrying the increase in accounts receivable to the incremental:

• A) decrease in the cash cycle.
• B) benefit from decreasing the inventory level.
• C) cash flows from increased sales.
• D) increase in bad debts.
• E) gain in net profits.